Global stocks steady, metals fly

On Tuesday, global shares showed a mixed performance as investors awaited this week’s U.S. inflation report and an important European Central Bank meeting. While industrial metals prices continued to rise, indicating optimism about a global manufacturing recovery, the pan-European STOXX 600 index fell slightly by 0.1% in early trading, and Wall Street futures remained steady.

According to Dan Boardman-Weston, CIO at BRI Wealth Management, stock markets appear to be in a holding pattern as investors seek more clarity on inflation and the overall state of the economy. The focus is on how the upcoming inflation data might influence expectations for future interest rate adjustments.

Expectations for U.S. rate cuts have diminished this year due to strong economic data and persistent inflation levels. Currently, traders are pricing in around 62 basis points of cuts from the Federal Reserve in 2024, a decrease from the beginning of the year. There is growing uncertainty about the likelihood of rate cuts and concerns about inflation, as noted by Deutsche Bank strategist Jim Reid.

Source: Reuters